Overview

two-sector endogenous growth model


Show Summary Details

Quick Reference

A model where two kinds of capital goods, physical capital and human capital, are produced in different sectors. In a standard set-up with a Cobb–Douglas production function in each sector the two production activities each exhibit constant returns to scale in the quantities of the two capital inputs. Hence, the model displays endogenous steady-state growth, where consumption, output, the stock of physical capital, and the stock of human capital all grow at the same constant rate.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.